Sapiens Reports Results for the First Quarter 2014 - KCTV5

Sapiens Reports Results for the First Quarter 2014

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Sapiens International Corporation

Record Quarterly Revenue of $36.6 Million, Up 16.3% Year-Over-Year

HOLON, Israel, May 12, 2014 /PRNewswire/ -- Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector, and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announced today its financial results for the first quarter ended March 31, 2014.

Sapiens International Corporation Logo

First Quarter Financial and Business highlights include:

  • Non- GAAP Revenue increased by 16.3% to $36.6 million from the first quarter of 2013.
  • Non- GAAP operating profit was $3.7 million compared to $3.4 million in the first quarter of 2013, an increase of 8.9%.
  • Non-GAAP net income attributable to Sapiens' shareholders reached $3.4 million, compared to $3.4 million in the first quarter of 2013.
  • Cash and cash equivalents as of March 31, 2014 was $75.0 million, and Sapiens has no outstanding financial debt.

Roni Al-Dor, President and CEO of Sapiens, commented: "This was a strong start to 2014, with significant growth across all of our products:  L&P, P&C and Decision. We continue to gain market share, and are focused on geographic expansion while simultaneously selling deeper into our current customer base. Over the past few quarters, we have been focused on expanding and enhancing our sales organization to further grow our customer base. We remain excited and confident about our opportunities in 2014 and beyond."

Mr. Al-Dor concluded: "We reiterate our revenue guidance of the range of $154 million to $158 million for the full-year 2014."

Quarterly Results Conference Call

Sapiens management will host its earnings conference call today, May 12th, 2014 at 10:00 AM EDT, 17:00 Israel, to discuss the results. To participate in the call, please dial in to the following numbers: United States 1.888.668.9141, International: +972.3.918.0609, UK: 0.800.917.5108 . The call will be webcast live on the Company's website at http://www.sapiens.com/webcasts-presentations.htm. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1.888.295-2634, International +972.3.925 5901.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP revenue, Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributed to Sapiens shareholders, Non-GAAP basic and diluted earnings per share.

Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens' financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.

The Company defines Adjusted EBITDA as net Profit, adjusted for stock-based compensation expense, depreciation and amortization, capitalized internal-use software development costs, Amortization of internal-use software development costs interest expense, provision for income taxes and other income (expenses). These amounts are often excluded by other companies to help investors understand the operational performance of their business. The Company uses Adjusted EBITDA as a measurement of its operating performance because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflect an additional way of viewing aspects of the operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting its business.

Summary of Non-GAAP financial Information



 For the three months ended



03/31/2014


03/31/2013



(unaudited)


(unaudited)






 Revenues


$  36,628


$      31,507

 Gross profit


14,648


13,485

 Operating profit


3,652


3,355

 Net income attributable to Sapiens' shareholders 


3,375


3,372

 Adjusted EBITDA


4,020


3,617

 Basic earnings per share


0.07


0.09

 Diluted earnings per share


0.07


0.08

 

About Sapiens

Sapiens International Corporation (NASDAQ and TASE: SPNS) is a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector. We offer core, end-to-end solutions for the general insurance, property & casualty, life, pension and annuities markets, and business decision management software, globally. We have a track record of over 30 years in delivering superior software solutions to more than 130 financial services organizations. Our team of more than 900 professionals operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific. For more information: www.sapiens.com

Forward Looking Statement

Some of the statements in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 3 of Part III of our Annual Report on Form 20-F for the year ended December 31, 2013 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.


Investors and Media Contact:
Yaffa Cohen-Ifrah

VP Corporate Marketing & Communications

Sapiens International

Office: +972-3-790 2026

e-Mail: yaffa.cohen-ifrah@sapiens.com


 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

 




  Three months ended


 March 31,


2014


2013


 (unaudited)


 (unaudited)





 Revenue

$      36,628


$     31,507

 Cost of revenue

23,251


19,363





 Gross profit

13,377


12,144





 Operating Expenses:




   Research and development, net

2,889


3,224

   Selling, marketing, general and administrative

7,314


6,340

 Total operating expenses

10,203


9,564





 Operating income

3,174


2,580





 Financial income, net

(46)


(285)

 Taxes and other expenses, net

179


275









 Net income

$        3,041


$      2,590





 Attributable to non-controlling interest

19


(43)





 Net income attributable to Sapiens' shareholders

$        3,022


$      2,633









 Basic earnings per share

$        0.07


$        0.07





 Diluted earnings per share

$        0.06


$        0.06





 Weighted average number of shares




 outstanding used to compute:








 Basic earnings per share

46,413


38,767

 Diluted earnings per share

48,493


40,643

 

 


 

SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

 






  Three months ended



03/31/2014


03/31/2013






 GAAP and Non-GAAP revenue


$      36,628


$          31,507











 GAAP gross profit


$      13,377


$          12,144

 Amortization of capitalized software


1,047


1,124

 Amortization of other intangible assets


224


217

 Non-GAAP gross profit


$      14,648


$          13,485











 GAAP operating income


$       3,174


$           2,580

 Gross profit adjustments


1,271


1,341

 Capitalization of software development


(1,401)


(1,108)

 Amortization of other intangible assets


337


328

 Stock-based compensation


271


214

 Non-GAAP operating income


$       3,652


$           3,355











 GAAP net income attributable to Sapiens' shareholders


$       3,022


$           2,633

 Operating income adjustments


478


775

 Other


(125)


(36)

 Non-GAAP net income attributable to Sapiens' shareholders


$       3,375


$           3,372
















 Non-GAAP basic earnings per share 


$         0.07


$             0.09






 Non-GAAP diluted earnings per share


$         0.07


$             0.08

 

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in thousands

 










March 31,


December 31,




2014


2013




 (unaudited)


 (unaudited)







 ASSETS











 CURRENT ASSETS:






Cash and cash equivalents


$       74,969


$       70,313


Trade receivables, net


24,875


23,669


 Other receivables and prepaid expenses


4,085


4,126


 Deferred Taxes


2,389


2,420








 Total current assets


106,318


100,528







 LONG-TERM ASSETS:






Property and equipment, net


5,403


5,263


Severance pay fund


11,097


11,228


Other intangible assets, net


29,642


30,014


Other long-term assets


2,930


2,957


Goodwill


72,213


72,438








 Total long-term assets


121,285


121,900







 TOTAL ASSETS


$     227,603


$     222,428








 LIABILITIES AND EQUITY











 CURRENT LIABILITIES:






 Trade payables


$        4,448


$        6,517


 Accrued expenses and other liabilities


22,931


21,248


Deferred revenue


12,089


9,928








 Total current liabilities


39,468


37,693







 LONG-TERM LIABILITIES:






 Other long-term liabilities


1,616


1,712


 Accrued severance pay


12,447


12,615








 Total long-term liabilities


14,063


14,327







 EQUITY


174,072


170,408







 TOTAL LIABILITIES AND EQUITY


$     227,603


$     222,428

 

 

 

SAPIENS INTERNATIONAL CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOW

U.S. Dollars in thousands

 




For the three months ended


03/31/2014

03/31/2013


(unaudited)

(unaudited)

Cash flows from operating activities:



Net income

$3,041

$2,590

Adjustments to reconcile net income to net cash provided by (used in)   

operating activities:



Depreciation and amortization

1,976

1,931

Stock-based compensation related to options issued employees

271

214

increase in trade receivables

(1,172)

(5,670)

Deferred tax assets

(27)

-

Decrease (Increase) in other operating assets

88

(1,335)

Increase (Decrease) in trade payables

(2,056)

2,963

Increase  in other operating liabilities

1,738

278

Increase  in deferred revenues

2,168

2,483

Severance pay

(31)

32

Net cash provided by operating activities

5,996

3,486




Cash flows from investing activities:



Purchase of property and equipment

(511)

(698)

Increase in capitalized software development costs

(1,401)

(1,108)

Increase in Restricted Cash

(57)

(344)

Net cash used in investing activities

(1,969)

(2,150)




Cash flows from financing activities:



Distribution of dividend

-

(5,802)

Proceeds from employee stock options exercised

727

1,145

Net cash provided by (used in) financing activities

727

(4,657)




Effect of exchange rate changes on cash and cash equivalents

(98)

(144)




Increase (decrease) in cash and cash equivalents

4,656

(3,465)

Cash and cash equivalents at the beginning of period

70,313

29,050




Cash and cash equivalents at the end of period

$74,969

$ 25,585





Photo - http://photos.prnewswire.com/prnh/20120508/531104

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
KCTV 5 News

Online Public File:
KCTV  KSMO

Powered by WorldNow CNN
All content © 2014, KCTV; Kansas City, MO. (A Meredith Corporation Station) and WorldNow. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.